Carbon Dioxide Removal Purchase Program.

Senator Caballero's Carbon Dioxide Removal Purchase Program legislation establishes a $50 million competitive grant program to advance carbon removal technologies in California through 2035. The program, administered by the State Air Resources Board, requires funded projects to secure matching private-sector carbon removal purchases while permanently retiring an equivalent amount of removal credits on behalf of the state.

The bill creates specific parameters for eligible projects, which must operate within California and fall into at least two categories: direct air capture, biomass carbon removal and storage, enhanced mineralization, or marine carbon dioxide removal. Individual projects cannot receive more than $12.5 million in grants, and no single removal category can exceed $25 million in total funding. Projects must demonstrate carbon dioxide removals verified by independent third parties, maintain storage for at least 100 years, and incorporate community benefit mechanisms.

The Air Resources Board must conduct annual surveys of carbon removal projects starting in 2028, publish regular program activity reports, and develop comprehensive guidelines addressing project eligibility, verification protocols, and prohibited activities such as enhanced oil recovery. The legislation aligns with California's existing carbon capture and storage programs while requiring legislative appropriation before implementation can begin.